BankAmerica Corp. has agreed to sell its 39% stake in BA Savings Bank here.
Yuchengco Group, a Philippine financial services firm, last week said its House of Investments Inc. subsidiary would buy the shares, increasing its ownership of the consumer banking operations to nearly 100%.
It also announced plans to expand BA Savings Bank's product offerings to include real estate, middle market, and credit card loans.
"BA Savings is a well-run consumer bank with an extensive branch network throughout the country," Alfonso S. Yuchengco 3d, chairman of BA Savings and vice chairman of House of Investments, said in a statement. The acquisition "enhances the Yuchengco Group's integrated financial services strategy."
BankAmerica bought the ownership stake in the Manila operation through its 1992 merger with Security Pacific Corp.
In a press release, BankAmerica group executive vice president James E. Hulihan Jr. said his institution would maintain a branch in Manila.
"BankAmerica will remain active in the Philippines and will continue to provide a broad range of commercial banking, corporate finance, capital markets services, and potentially retail banking," he wrote.
Yuchengco Group's purchase of the BA Savings stake is subject to the approval of Philippine regulators. The firm owns several other financial firms in the Philippines, including Rizal Commercial Banking Corp., Malayan Insurance, and Great Pacific Life.